What is customer due diligence in banking - a detailed insight
The simplest method to describe Customer Due Diligence (CDD) is that it’s the regulatory obligation of banks and other financial institutions. It is often considered as it is the obligation of the banks only but that is not the case. It’s because the banks were the very first entities who were obliged to perform customer due diligence when the laws first came into being. Let’s have a detailed insight into customer due diligence. DefinitionCustomer due diligence for banks is the act of collecting and verifying the personally identifiable information to maintain an understanding of the risk associated with the customer and to verify that the customer is who he claims to be. Customer due diligence is a part of a bigger thing called “Know Your Customer” or simply KYC. CDD is the first step of…